City Council Passes Title Clouding Prevention Bill

Democracy at work!

Brooklyn A is delighted to announce that Int. 1086-A, which was introduced by Council Member Nantasha Williams in partnership with our Consumer & Economic Advocacy team to help prevent title clouding scams, was passed by the City Council yesterday.

The bill requires the Department of Finance (DOF) to notify property owners within 30 days whenever a deed or mortgage-related document is recorded for their property. Brooklyn A has seen cases where scammers attempt to “cloud” the rightful ownership of a property by filing documents that make it unclear who the rightful owner is. Providing prompt notice to homeowners of activity related to their title will give them the opportunity to clear up any confusion and prevent issues accessing aid or losing the property down the line.

“Our team is thrilled to see this bill passed,” said Tamara del Carmen, Director of the Consumer & Economic Advocacy Program at Brooklyn Legal Services Corporation A. “When we don’t have protections in place for homeowners, they can easily fall prey to scams and tricks that can deprive lifelong New York City families of their homes. We were proud to work with Council Member Williams on this legislation and I know it will have an immediate impact on the clients we serve and the city at large.”

Tamara and Alex Knipenberg, Deputy Director of the Consumer & Economic Advocacy Program, worked closely with Council Member Williams’ office on this bill, hoping to add protections for New Yorkers after seeing a pattern of title clouding issues among our foreclosure clients. The pair testified on behalf of the bill to the City Council’s Finance Committee hearing in January (photo on the right).

“When a deed is recorded without a homeowner’s knowledge, it creates a bureaucratic failure that can cost someone their home,” said Council Member Williams. “Far too many New Yorkers have found out too late that something was wrong. This bill puts responsibility where it belongs: on the city, to notify and protect the people it serves.”

Tracking the number of title clouding and deed theft cases can be difficult, and many people don’t know a scammer has preyed on their property until it’s too late. Low-income, Black, and Latino homeowners are often targeted in these schemes. Attorney General Letitia James noted two years ago that the city sheriff’s office received 3,500 deed theft complaints between 2014 and 2023. Having early notice from the Department of Finance will give homeowners the chance to head off scam attempts early so they can preserve their homes.

“This legislation is an important step in stemming the tide of predatory activity homeowners face across New York City – the preservation of homeownership needs to be a part of a holistic approach to the housing crisis our city faces,” said Jessica Rose, Executive Director of Brooklyn A. “We so appreciate Council Member Williams’ leadership on this issue. Protecting homeowners takes a strong partnership between civil legal service providers like Brooklyn A and dedicated elected officials. This successful collaboration is another example of how we can work together to improve the lives of all New Yorkers.”